The U.S. Grains Council used $40,000 of Market Access Program money to conduct a research project in conjunction with North Carolina State University that has successfully demonstrated the added value of carotenoid, a naturally occurring pigment used to enhance egg color and the skin color of broilers, from including corn distiller’s oil in poultry rations. This is important as many poultry consumers around the world prefer a yellow-skinned chicken and a dark yellow egg yolk.
The 56-day feeding trial was performed in broilers to determine if the carotenoids in corn distiller’s oil, sometimes referred to as CDO, could be transferred to them. At the end of the study, researchers found the carotenoids in corn distiller’s oil add an additional value of $0.05 of value per kilogram of corn distiller’s oil. For a 100 million gallon ethanol plant, this new use could translate into an additional $500,000 in revenue annually.
The conclusions from this study are particularly important in some of the export markets where we work, like Mexico, and could bring additional value to our ethanol members who can sell CDO for both energy value and its carotenoid value. According to the Renewable Fuels Association, the U.S. ethanol industry produced 2.5 billion pounds of corn distiller’s oil in 2014. The value of this study, is that it can create an additional value of $56 million of the U.S. ethanol industry. What makes this study unique is that most ethanol plants sell corn distiller’s oil on an energy value basis. However, if they are able to find customers who value the carotenoids, there are new opportunities to create additional value.
Dr. Peter Ferket from the university presented the results of the study at the 2016 Atlanta International Poultry Expo at the end of January. In the meantime, the Council is planning feeding trials in Mexico to demonstrate this added value to the Mexican poultry industry and outreach domestically to ensure the U.S. ethanol industry is aware of the market opportunity.
About The U.S. Grains Council
The U.S. Grains Council develops export markets for U.S. barley, corn, sorghum and related products including distiller’s dried grains with solubles (DDGS) and ethanol. With full-time presence in 28 locations, the Council operates programs in more than 50 countries and the European Union. The Council believes exports are vital to global economic development and to U.S. agriculture’s profitability. Detailed information about the Council and its programs is online at www.grains.org.